Chinese path -- a marvel of world's economic growth

15:58, April 25, 2011

China's rapid growth over the past 30 years has won worldwide attention, and China efforts to battle global economic downturn since late 2008 have drawn global praise.

China's miraculous growth is by no means luck by chance, and it is the path of development with Chinese characteristics, which is clear and explicit, and suits the country perfectly.

According to data from World Bank (WB) and United Nations Development Programme (UNDP), 20 economic entities in 168 countries and regions worldwide witnessed rapid economic growth between 1978 and 2008. Among the 20 economies, 13 of them implemented the Five-Year plan. Furthermore, eight among the world's top ten fastest growing economies carried out the Five-Year plan. China, in this context, is the world's fastest growing economy and the best performer in terms of Human Development Index (HDI) improvement.

This is neither a historical coincidence nor an international coincidence. As Mr. Deng Xiaoping pointed out, both planning and market are economic instruments. We both need to implement the Five-Year plan -- a visible hand, to provide public service, invest in human resources and enhance social progress, and carry out market mechanism -- an invisible hand, to open domestic market, introduce competition and boost economic growth.

The well-balanced coupling of the planning and market tools has proved to be the key to "Chinese miracle".

An evaluation on the performance of G20 countries during global credit crunch over the past three years showed that China is one of the world's biggest winners in terms of economic growth, employment, inflation as well as proportion of fiscal deficit to GDP. China has met the target of macro-economic control and ranked second in GDP, trade, science and technology.

China stands like a rising star in the east, thanks to its decision-making body, CPC Central Committee and State Council, making correct and timely decisions on major issues. In November 2008, Executive Meetings of the State Council put forward the proposal of a "four-trillion-yuan stimulus package", Central Economic Work Conference approved the package and the National People's Congress (NPC) deliberated and approved the plan in March, 2009.

The giant is on its two hands, one being visible another invisible, which complement each other. Government investment between 2009 and 2010 totaled four trillion yuan, but it brought about over 40 trillion yuan non-governmental investment, 10 times more. The accumulated investment in fixed assets stood at 5.03 billion yuan, which ensured China the first country to recover from the downturn.

The giant is also on its pair of legs, one being state-owned economy another private economy, which are harmoniously arranged.

Last but no least, the giant is also on enthusiasm, one being from central government another from regional governments. Every corner of the country has enjoyed nationwide support in terms of public services, public investment or disaster relief.

China's battle against global economic crisis has prompted a great deal of study among scholars overseas. As U.S. scholar Francis Fuknyama wrote in his article, China's fight on global financial crisis is largely based on its political system, which could make major, complicated but efficient decisions, and promptly carry them out, at least in terms of economic policies. Comparatively speaking, U.S. does not have that system, and it is more rigid.